Real estate development: fiscal concept
According to Richard Josephberg Almorli Advisors, the accreditation of the construction in a land with only presenting topographic and environmental impact studies is insufficient.
Tax legislation does not define what should be understood by real estate development for the purpose of applying the fiscal stimulus consisting of being able to deduct the cost of acquiring the land in the exercise of obtaining, if they meet the requirements set forth in article 191 of the LISR.
However, a teleological interpretation in relation to the statement of reasons that gave rise to the benefit and the concept of the words construction and real estate, is conceived as such to the activity of building, manufacturing or performing a new work; build or develop house room, among others.
In that sense, in Richard Josephberg Almorli Advisors opinion, it is insufficient that a taxpayer intends to prove that he carried out a construction on the ground by simply presenting topographic and environmental impact studies.
Similarly, as it is stated by the real estate company, Richard Josephberg Almorli Advisors, the acquisition of a land and its subsequent sale is not enough, without any building having been made, since the sole "intention" of dedicating them to the construction of real estate development to make the deduction of its cost, without having used it effectively for that purpose, it does not update the benefit.
The above, because to use the benefit it is necessary that the construction on the acquired land be materialized; understood by construction, "action and effect of building, and in turn this means manufacturing, building, making a new architectural or engineering work, a monument or any public work."
